World Currency Unit

Monetary reform involves a clear understanding of why free markets succeed, over those which are subject to manipulation and debasement. The global deployment and integration of the World Currency Unit will require a complete change of socio-political and economic cultures, but properly approached it can be achieved, as the neokeynesian macroeconomics induced liquidity trap, has no solution. From an economic standpoint, the introduction of the World Currency Unit will yield immediate benefits for the population compared with a current, debt overloaded, currency regimes. The actors obstructing the World Currency Unit introduction, suffer from a lack of understanding of catallactic theory by professorial economists and the establishment’s relentless grip on bureaucratic and political power.

Within a modern digital world without borders, money is no longer created by government decree, but rather by surviving the test of global trade and the pressures of market forces while maintaining its value. The establishment of a global reserve currency cannot be decreed by law or agreed by governments. Rather, it arises naturally as a result of choices made by a multitude of financial operators, and since one of the main qualities that those financial operators are seeking is the general acceptance of the currency by other operators, the choice tends to be made based on consensus and critical mass rather than anything more scientific or precise. The excellence of the World Currency Unit is the fact that it renders the determination of the monetary unit's purchasing power independent of manipulation or debasement by individual nations, political parties and supra-national corporations like the GAFA’s. The World Currency Unit is more stable than Gold itself, and like Gold cannot be destroyed.

The World Currency Unit is sound incorruptible money, because no other arrangement can survive over time.

Unfortunately every reserve currency issuer, going back to the Athenians in the 5th century BCE, has ultimately abused the associated privilege; every reserve currency issuer has over-issued its currency and eventually found trust in its credit withdrawn by the rest of the world. The World Currency Unit represents a supra-currency or Sound Money, based upon universal “tangible property” law. The utility of the World Currency Unit increases as more and more countries use this universal standard. There is no restriction on the flow of the World Currency Unit between currency areas, there are no fees or spread with the exchange to the worlds daily priced 157 fiat-currencies today.

In its simplest form the purchasing power parity theory, suggests that currency area price levels converted to a common World Currency Unit using exchange rates should be equal. Arbitrage will ensure that the price of an individual good will be the same in all countries in which it is traded - the law of one price. Thus, when the individual goods are taken together, there will be high correlation in general price levels – at least in the medium and long term. The two principle assumptions underlying the theory are that the demand and supply for currency is driven entirely by international trade and that all goods (and services) are internationally tradable. The World Currency Unit is used to convert the GDP expenditures of the countries being compared to a common currency when the countries have different national currencies and, because the GDP expenditures of the countries are valued at national price levels, they are used to revalue the expenditures at a uniform price level. The purchasing power of the World Currency Unit will vary from country to country in line with currency area price levels. Hence, although the World Currency Unit is not needed to convert the GDP expenditures to a common currency when currency areas share a common currency, they are still needed to value the GDP expenditures at a uniform price level. In other words, the World Currency Unit is employed as spatial price deflator’s only and not as both currency convertors and spatial deflators. The world of global cross currency area payments now beats in perfect synchronicity, based upon globally verifiable and unconditional human-based trust...

The World Currency Unit is a vision of a more equitable global society; supported by global economic growth, without distortions caused by capital derived poverty as manifested throughout human history, via Machiavellian organisations and individuals. This is a vision of a truly decentralized form of money based upon human trust and global free trade. 

The World Currency Unit or Bit, is a digital bearer asset with worldwide legal tender status.

The Function of the World Currency Unit

If the demand by those holding a particular currency, say sterling, for another currency, say the dollar, exceeds the demand of dollar holders for sterling, the dollar will tend to rise in the foreign exchange market. Under the WCU standard system there is a limit to the amount by which it could rise or fall based upon the inertia inherent in a commodity. If a sterling holder wanted to make a payment in dollars, the could procure the dollars in the foreign exchange market. But under the WCU standard he has another option; i.e., he had a legal right to obtain WCU-capital from the authorities in exchange for fiat currency at the daily spot exchange rate, for that currency and remit the WCU to the other country, where he would have a legal right to obtain its currency in exchange for WCU at its spot free market valuation. Thus, it would not be advantageous for a sterling holder to obtain dollars in the foreign exchange market if the quotation for a dollar there exceeded parity by more than the cost of remitting WCU. The exchange rate at which it became cheaper to remit WCU rather than use the foreign exchange market is known as the “WCU-export point.” There was also a “WCU-import point” determined on similar lines.

The international WCU standard provided an automatic adjustment mechanism, that is, a mechanism that prevented any country from running large and persistent deficits or surpluses. It worked in the following manner. A country running a deficit would see its currency depreciate to the WCU-export point. Arbitrage would then result in a WCU-capital flow from the deficit to the surplus country. In other words, the deficit would be settled in WCU. When WCU-capital flowed into the payment system of the surplus country, its money stock rose as a consequence. On the other side, when a deficit country lost WCU, its money stock fell. The falling money stock caused deflation in the deficit country; the rising money stock caused inflation in the surplus country. Thus, the goods of the deficit country became more competitive on world markets. Its exports rose, and its imports declined, correcting the balance-of-payments deficit.

The World Currency unit is priced on a global free market basis each day to 157 fiat currencies.

Physical Gold Bullion

Physical gold has zero monetary utility as it represents  a non-fungible commodity, which doesn't produce earnings, excess value or pay dividends. It cannot be used as a currency within a deferred payment, and it has ongoing costs for secure storage and insurance. Essentially no one can purchase anything with a gold bar not even a cup of coffee, if the worlds currency collapses, gold will not have any value in trade as it does not posses the property of elasticity. Elasticity," is used to express the readiness with which Gold responds to the liquidity exchange demands upon it within a payment.  Gold has some industrial and decorative utility, but as  a financial investment it represents a collectable, it only value is in the eyes of the holder. The World Currecny unit morphs a non-fungible commodity of Gold into a fungible currecny with face value.

"Gold gets dug out of the ground, we melt it down, dig another hole, bury it again and pay people to stand around guarding it. It has no utility." -- Warren Buffet

The World Currency Unit transforms via, legally codified dematerialisation, physicals gold into the most liquid form of capital in circulation within human history.